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> edit: And the government can redistribute the carbon taxes to the part of the population this will hit the hardest easily by lowering VAT, income taxes at the lower end of progression or just direct subsidies.

In reality governments will create laws which will distribute those money to friendly companies. You can forget right now that it will go back to poor people.



One of the few countries with an actual carbon tax, Canada, rebates 90% of the tax to individuals and the other 10% to schools and hospitals.




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